Apr 22, 8:56 AM AIR


The 12th Five Year Plan proposes re-designing of government programmes for sustainable growth and aims at achieving 9 to 9.5 per cent growth with focus on health and education.

Targeting 100 per cent adult literacy, the next Plan from 2012 to 2017, proposes to increase expenditure on health from 1.3 per cent to at least 2 to 2.5 per cent of GDP. Addressing the full Planning Commission meeting in New Delhi the Prime Minister Dr. Manmohan Singh said the 12th Plan objective must be faster, more inclusive and sustainable growth. Outlining the need to identify critical areas where existing policies and programmes are not delivering results, Dr. Singh called for strengthening or even restructuring them. He said, the country needs to tackle new challenges which call for new initiatives.
The Prime Minister specifically asked the Commission to examine challenges relating to energy, water and urbanisation which are likely to become more severe. He asked the Planning Commission and Finance Ministry to work in close cooperation on the availability of resources for the 12th Plan, consistent with the objective of ensuring fiscal viability.

Dr. Manmohan Singh said, in a scenario of resource constraint, focus must be on efficiency of resource utilisation as well as supplementing public resources with private investment.

The Prime Minister also urged the Commission to prepare estimates of poverty based on the latest data and make them available for public discussion as soon as possible. He said, despite severe drought and global economic slowdown, the 11th Plan will end with 8.2 per cent GDP growth which is short of 9 per cent target but it is a commendable achievement. Dr. Singh said, though progress was made in areas like enrollment in schools reducing gender gaps but progress falls short of the target set for the 11th Plan.

A presentation about the ongoing 11th Plan and objectives of the 12th Plan pointed out that some of the challenges that Indian economy faces include higher inflation, global pressure on food and oil prices, quality of governance and weak manufacturing performance which can be given a boost by liberalising the policy on the foreign direct investment. It said health and governance received less than projected resources in the 11th Plan. The growing Indian economy will need a minimum additional power capacity of one lakh MW during the 12th Plan.

While pointing out there was a need for further safety measures, the meeting emphasised that the nuclear power must be expanded. Expressing concern over less than expected inclusive growth and the likelihood of missing the UN Millennium Development Goals, it noted the concerns on governance and empowerment. The Commission for the first time used Internet to reach out to broader community including hundreds of sectoral experts. A series of regional consultations with the states are planned next month in the run-up to the National Development Council meeting, the highest policy making body comprising the Prime Minister, Cabinet Ministers and Chief Ministers.